spreadsheets vs erp - jon kidd at eusprig 2014
DESCRIPTION
The development of spreadsheets and ERP systems have taken parallel paths in their histories to date. Often, spreadsheets have been used to bridge temporary gaps in the functionality of Enterprise systems, and these temporary, tactical ‘bridges’ become permanent and strategic over time – weakening Enterprise Management, Governance and Resilience. This paper will examine the problem in more detail, and what pragmatic steps can be taken to achieve the right balance between spreadsheets and ERP systems – thereby reducing Enterprise risk.TRANSCRIPT
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Spreadsheets vs ERPWhere does the balance lie?
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Introductions &
Background
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Accountant’s Perspective
We live in parallel universes
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Engineer’s Perspective
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Accountant’s Perspective
We live in parallel universes
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Pre ERP - Chaos on the Shop Floor
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MRP makes a difference
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We begin to make wonderful things
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And start counting the cost...
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€
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ERP - breaking down data barriers
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Board
FinanceHRProductionSales
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ERP vision - single core, multiple views
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Courtesy: NetSuite
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Domestic Broadcast Satellite Company:• 18 manufacturing sites across Europe• Long lead-time, hi-tech raw materials• Fluid customer base and demand• Management by spreadsheets• OUT OF CONTROL
ERP - great when it works
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Domestic Broadcast Satellite Company:• 18 manufacturing sites across Europe• Long lead-time, hi-tech raw materials• Fluid customer base and demand• Management by spreadsheets• OUT OF CONTROL
ERP - great when it works
Results - expected:• procurement & stock optimised• detailed cost analysis enabled• order fulfilment
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Domestic Broadcast Satellite Company:• 18 manufacturing sites across Europe• Long lead-time, hi-tech raw materials• Fluid customer base and demand• Management by spreadsheets• OUT OF CONTROL
ERP - great when it works
Results - unexpected:• ‘You’ve ruined my job’• Selling at a loss• Stock write-offs
Results - expected:• procurement & stock optimised• detailed cost analysis enabled• order fulfilment
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‘ERP’ - disastrous when it doesn’t work
UK government scraps the £12 billion
National program for IT in the NHS
SAP project woes impact Ingram Micro's
profits -- twiceEpicor sued by customer over ERP project that
turned into a 'big mess'
Over 80% of corporate programmes ‘fail’ to deliver - why would you want to be the next?
Marin County accuses SAP, Deloitte Consulting
of a racketeering scheme
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Dan BricklinVisicalc
1979
Lotus 123For PC1983
MsoftExcel1985
Summarising our two paths
ManufacturingResourcePlanning
MaterialsRequirements
PlanningInventory
Control
EnterpriseResourcePlanning
1970s
1960s
1980s
1990s
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Spreadsheets and ERP - an uneasy alliance
time
Spre
adsh
eet c
ount
Backgroundcount
ERP 1Facelift 2
ERP 1Facelift 1ERP
Programme 1
ERPScope/Complexity
ERPProgramme 2
What starts off as a short-term ‘bridge’ often becomes a long-term dependency
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Spreadsheets vs ERPSo where does the balance lie?
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Spreadsheets vs ERPDoes it just come down to perference?
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Spreadsheet vs Enterprise
Key perceptions:• Single version of the truth• Everyone works in the same way• Corporate control• Knowledge-sharing is enabled• Cost savings will occur
Key perceptions:• Personal control & power• Responsive & agile• Visibility of the path to the answer• Instant gratification• No – or low – cost
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Spreadsheet vs Enterprise
Hidden issues:• Project cost and failure• Inertia and delays• High cost of ownership• Lack of skills & competence• Corporate disobedience
Key perceptions:• Single version of the truth• Everyone works in the same way• Corporate control• Knowledge-sharing is enabled• Cost savings will occur
Key perceptions:• Personal control & power• Responsive & agile• Visibility of the path to the answer• Instant gratification• No – or low – cost
Hidden issues:• Corporate liability• Addictive• True cost of ownership• Barrier to collaboration• WYSIATI
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Living with Spreadsheets – a CEO’s perspective
• Simple errors are rife – I make them all the time!• Skills & competence are unchallenged• Inheritance is common - both intra and inter organisation• Individual time-wasting in spreadsheet world• One-dimensional thinking in a box• Competing ‘voices’ across the organisation• ‘Straight-to-spreadsheet’ thinking has increased• Absence of supporting information – the story
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Living with ERP – a CEO’s perspective
• Incredibly powerful and comprehensive solution set• Enables and promotes team and enterprise thinking• Single version of the ‘truth’ flowing through the organisation• Sound and reliable decision making• Takes far too long to implement• Programme ‘Failure’ a likelihood• Cost of ownership high for unpredictable returns• Corporate disobedience regularly undermines potential
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Big Data
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Spreadsheets and ERPEnsuring Solid Foundations
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Spreadsheets and ERPEnsuring Solid Foundations
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Spreadsheets and ERPBridging the gaps
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?
±
P R E S E N T
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Spreadsheets and ERPAnalysing the Past
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±?
±
PAST
P R E S E N T
?
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Spreadsheets and ERPAddressing the Future
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±?
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±
PAST
FUTURE
P R E S E N T
?
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Spreadsheets vs ERPSo where does the balance lie?
Spreadsheets: Temporary/Short-term Dynamic environment Innovation & creativity Simple data sets Static data Localised use Decision support
ERP: Medium to Long Term Stable environment Repetitive, heavy lifting Complex interactive data sets Real-time process/data flows Pan-organisational use Decision execution
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Spreadsheets vs ERPSo where does the balance lie?
Together, we can :•accurately evaluate the past•effectively manage the present•confidently address the future
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Spreadsheets: Temporary/Short-term Dynamic environment Innovation & creativity Simple data sets Static data Localised use Decision support
ERP: Medium to Long Term Stable environment Repetitive, heavy lifting Complex interactive data sets Real-time process/data flows Pan-organisational use Decision execution
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Spreadsheets and ERPwhere does the balance lie?
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THANK YOU!
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Draft for Discussion only
Further thoughts?
Call: +44 (0) 7989 156 555Email: [email protected]: @toutsuite4bizBook: Scheduled for publication Q3/2014
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